Dáil Éireann Debate, Wednesday - 18 April 2018
41. Deputy Brendan Smith asked the Minister for Business, Enterprise and Innovation her plans to introduce a scheme such as the Enterprise Stabilisation Fund that was introduced in 2009 to assist businesses that face particular difficulties due to Brexit; and if she will make a statement on the matter. [16795/18]
View answerThe Department has undertaken significant research and consultation to better understand the challenges posed by Brexit for businesses in Ireland, and based on this work has designed a suite of supports for impacted businesses. I recently launched a €300 million Brexit Loan Scheme. This scheme is designed to assist eligible businesses exposed to negative impacts resulting from Brexit in adjusting, changing, or adapting to mitigate these effects. The finance offered under the scheme is easier to access, more competitively priced, and at more favourable terms than other current offerings.
A Technical Working Group on State Aid comprising representatives from DG Competition, DBEI, EI and DAFM was established in November 2017. The objective of the Group is to scope and design schemes to support enterprises impacted by Brexit in line with current applicable State Aid rules. Should issues arise that require an approach that does not fit within the existing State Aid rules, this will be raised as part of the Working Group discussions.
A notified Rescue and Restructuring (R&R) scheme was approved by the Commission in late November 2017. This scheme has been put in place as it is considered prudent to have contingency measures in place so that we can respond swiftly to changing circumstances as necessary. Under the scheme, which will run until 2020, Enterprise Ireland can provide restructuring support to SMEs in severe financial difficulties.
As part of the deliberations of the Working Group on State Aid, it was agreed that my officials should extend the R&R scheme to include temporary restructuring support for those SMEs who experience acute liquidity needs. This extension, which has been notified to the Commission, will be a welcome addition to our suite of supports for businesses impacted by Brexit. The temporary restructuring support, together with the rescue aid and the capital support under the Brexit Loan scheme should provide support to those SMEs who require stabilisation during transition.
